Tax News Update    Email this document    Print this document  

February 28, 2023
2023-0385

Divided Supreme Court reverses 5th Circuit to hold penalty for failure to file FBAR report is on a per-form basis, not a per-account basis

In a 5-4 decision (Bittner v. United States), the Supreme Court has reversed and remanded a Fifth Circuit decision to hold that, under the Bank Secrecy Act, a taxpayer's failure to file a legally compliant FBAR report on his foreign financial accounts should be treated as one violation carrying a maximum penalty of $10,000 — not as a separate violation for each foreign account not timely reported. For background, see Tax Alert 2022-0969. A Tax Alert is forthcoming.

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2024, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement